In this episode, we look at RaiseCapital and FundFindr, two companies seeking to match entrepreneurs with investors. This is a fun topic for me, as Vator is definitely a venue for both those seeking funds and those dispensing them. Keep in mind, however, that as much as people say Vator is a matchmaker between entrepreneurs and investors, we're not. We're just the platform for both sides to be found. Vator is mainly a place where entrepreneurs can share their own narrative, be discovered, be followed and build a reputation. Along with our newsroom, Vator is really a media, content company that is primarily built on participatory or user-generated content. To this end, we seek to partner with companies, such as RaiseCapital and FundFindr, if they can provide the matchmaking services for us.
Co-host Ezra Roizen (Vator Box regular and investment banker), and Lise Buyer, consultant to companies that want to IPO, filled this week's roundtable discussion.
The idea of bringing both sides together is something that is definitely needed, we all agreed. This is mainly because the Internet has enabled many people to build their own companies. And, in my view, it's because investors are becoming savvier and they're willing to take risks in private placements rather than penny stocks. Indeed, there were 57,000 companies that received angel funding last year. Angels invested $26 billion in funding. If one assumes that 3% to 10% of those seeking get funding, then the list of companies seeking funding is significant.
Now, all they need is access and money.
It's no wonder, these sites, as well as Ideablob, TheFunded, FundingUniverse, Fundability, Gensx, and YouNoodle, have emerged. The key to the success of these services will be in their business model. Will they charge entrepreneurs or investors? Will they charge a subscription fee, a success fee, a consulting fee, or will they go for advertising dollars?
We discuss all that in this week's Vator Box.